The most common use of the CPI is as an economic Indicator to forecast Inflation and evaluate the effectiveness of government policies. Using the monthly CPI (seasonally adjusted) from January 2007 to May 2013, the estimated regression is: CPI-206+0.0346t, where t= 1, 2, ...77 to represent the months in the series. Which statement below is true? O The Intercept is an estimate of CPI for 2013 O The Intercept is an estimate for the average value of CPI in January. O The estimate value of CPI In January 2007 is about 206.03 O The Intercept is the value of CPI in January 2007.

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Chapter1: Making Economics Decisions
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The most common use of the CPI is as an economic Indicator to forecast Inflation and evaluate the
effectiveness of government policies. Using the monthly CPI (seasonally adjusted) from January
2007 to May 2013, the estimated regression is:
CPI-206+0.0346t,
where t= 1, 2,...77 to represent the months in the series.
Which statement below is true?
O The Intercept is an estimate of CPI for 2013
O The Intercept is an estimate for the average value of CPI in January.
O The estimate value of CPI In January 2007 is about 206.03
The Intercept is the value of CPI in January 2007.
Transcribed Image Text:The most common use of the CPI is as an economic Indicator to forecast Inflation and evaluate the effectiveness of government policies. Using the monthly CPI (seasonally adjusted) from January 2007 to May 2013, the estimated regression is: CPI-206+0.0346t, where t= 1, 2,...77 to represent the months in the series. Which statement below is true? O The Intercept is an estimate of CPI for 2013 O The Intercept is an estimate for the average value of CPI in January. O The estimate value of CPI In January 2007 is about 206.03 The Intercept is the value of CPI in January 2007.
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